Cost assessment guidance: carbon dioxide transport and storage companies
Guidance
- Publication date
- Industry sector
- Carbon capture and storage
This guidance is for Carbon Dioxide Transport and Storage (CO2 T&S) developers and licensees. It outlines how we intend to assess costs submitted for approval under the carbon dioxide transport and storage licence.
About this Cost Assessment guidance
This guidance describes the process and principles Ofgem expects to consider when assessing costs submitted by licensed carbon dioxide transport and storage companies operating licenced networks. It applies to:
- cost assessment activities we expect to undertake as part of periodic reviews
- relevant licence re-openers
- reporting against allowances set at licence award
Includes
- Business planning and defining value for money
- Cost assessment process
- Devex provision
- Assessment & verification
- Capex/opex splits
- Asset management plans
- Strategic spares management strategy
- Associated party transactions
- Uncertainty mechanisms
- Allowance indexation
- Power price indexation
- Foreign exchange
- Hedging strategy submissions
- Logging hedged costs
- Pass-through cost scrutiny
- Re-openers
- Cost reporting and logging
Get more information
Learn more about our role in the regulation of carbon capture and storage.